The Albion posts losses of £14.7m

[Lady Whistledown]

I was on Radio Five Live at lunchtime, talking about United's financial results, and mentioned that United would save money this season from lower interest payments and win bonuses.

Tremendous skills

 

[Alex Alex Dawson oo! oo!]

That sounds right to me.

I must say Albion fans are much nicer than Manchester United ones, some of whom have sent me very rude messages after I was on Radio Five Live at lunchtime, talking about United's financial results, and mentioned that United would save money this season from lower interest payments and win bonuses.

Marvellous scones El Pres, absolutely marvellous

 

[Lady Whistledown]

[tweet]433598106199150592[/tweet]

 

[Goldstone1976]

£480k for a CEO of a £25million turnover company is about right. CEO's of £5m-£10m businesses earn £150-£200k per annum, so on this basis £480k for Barber is about right. It's the going rate for a CEO.

£500k would be about right all-in, including salary, bonuses, BIK and some contribution from share options (but not IPO- or trade sale levels of option benefit) IF the business was decently profitable. For a loss-making business that is forecast to continue making losses, it's very high. However, this is football, so not a normal business. Also, critically, the shareholders (well, the only one who counts, who owns ~93%) are self-evidently happy to pay it. There's no doubt that PB is an excellent CEO of the club. The progress that the club has made over the last 2 years is nothing short of phenomenal in commercial terms. I wouldn't be a bit surprised if other clubs have tried to tempt him away; this level of compensation makes it much harder for them to succeed.

 

[Gordon Smith's Paperboy]

Not sure about transfer fees, would depend on the age of the player I guess.

So, potentially, would Monakana's transfer and wages not count for FFP?

 

[sydney]

I just want you to know that I was listening to you in bed last night

 

[AZ Gull]

1:Stadium depreciation/rent is ignored for FFP purposes, so the number is added back to losses to reduce them (as are youth development costs, probably about another £2-2.5million) so our FFP loss is between £11-12million I estimate.

2: TCS Ltd make a loss as they incur the stadium running costs, so nothing available for TB.

[MENTION=31]El Presidente[/MENTION] - I know that the financial accounts have various adjustments before they are submitted for FFP purposes. My question - which set of accounts are the starting point - would it be the accounts of the Holding company, or the football club?

 

[Dick Knights Mumm]

I was on Radio Five Live at lunchtime, talking about United's financial results, and mentioned that United would save money this season from lower interest payments and win bonuses.

You working at Liverpool University will have been red rag to a bull. Top work.

 

[El Presidente]

I just want you to know that I was listening to you in bed last night

OMG

I'm sure it was a great cure for insomnia.

 

[El Presidente]

[MENTION=31]El Presidente[/MENTION] - I know that the financial accounts have various adjustments before they are submitted for FFP purposes. My question - which set of accounts are the starting point - would it be the accounts of the Holding company, or the football club?

It's the football club.

 

[seagullsovergrimsby]

Rather than assume anything, the accounts state that commercial sponsorship and advertising increased by £0.3M.

The performance related pay bonus is more likely to be linked to all round savings made by the CEO plus his commission on new partnership deals , sponsorships and advertising may have been paid up front before they became effective for the 13/14 season.

 

[Goldstone1976]

The performance related pay bonus is more likely to be linked to all round savings made by the CEO plus his commission on new partnership deals , sponsorships and advertising may have been paid up front before they became effective for the 13/14 season.

It's unlikely that any performance related pay would be just linked to cost savings; that would encourage cost cutting which may have a short-term benefit to the individual but have a catastrophic effect on the long-term viability of the club. Similarly, CEO's tend not to get commission on particular deals; it incentivises poor decision-making at best, fraud at worst. Much more typically, CEO's are incentivised on profit (or, in this case, minimising operating loss) or, sometimes, increasing controllable revenue. In BHA's case, given the job is to both increase revenue and reduce cost, while leaving available as much money as possible for the playing budget, I suspect that the principal target would be to minimise non-football budget operating losses, perhaps with some non-financial kickers, such as customer service, though non-financial measures are notoriously difficult to measure. I have a lot of experience in remunerating CEO's, but none at all of running a football club!

 

[Lady Whistledown]

OMG

I'm sure it was a great cure for insomnia.

To be strictly accurate, I was listening to you, Matt, Al and Ady.

Romantic, no?

 

[The Merry Prankster]

To be strictly accurate, I was listening to you, Matt, Al and Ady.

Romantic, no?

Yeah, but we felt like gooseberries.

 

[Goldstone1976]

To be strictly accurate, I was listening to you, Matt, Al and Ady.

Romantic, no?

Greedy Gi..... no, no, no.

Coat.

 

[matthew]

Kind of shows how well Arsenal have done balancing their books. But still we've won a trophy before them.

 

[Addiseagull]

£500k would be about right all-in, including salary, bonuses, BIK and some contribution from share options (but not IPO- or trade sale levels of option benefit) IF the business was decently profitable. For a loss-making business that is forecast to continue making losses, it's very high. However, this is football, so not a normal business. Also, critically, the shareholders (well, the only one who counts, who owns ~93%) are self-evidently happy to pay it. There's no doubt that PB is an excellent CEO of the club. The progress that the club has made over the last 2 years is nothing short of phenomenal in commercial terms. I wouldn't be a bit surprised if other clubs have tried to tempt him away; this level of compensation makes it much harder for them to succeed.

yes fully agree!